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Wag taw The Honorable Benjamin Benson and Members of the City Council February 16, 1982 Page Two In 1980 the City of Lino Lakes transferred $26,000.00 from four special assessment funds to the general revenue fund. This transfer represented reimbursement to the city for the administrative costs that had been previously incurred but never charged on the four projects. Although the city is unable to detail exact costs attributed to these projects, it was advised by its bond consultant that 1 -2% of project cost was an appropriate charge for administrative costs. The City estimated its administrative costs to be 1.58% of $1,648,200.00 (total affected special assessment projects). The Attorney General has stated that the use of a percentage rate for city administrative charges as a cost of a special assessment project is permissible so long as the sums charged are not in excess of the reasonable value of the services rendered. See Op. Atty Gen. 408 -C, August 1, 1957. We recommend that detailed time cards be prepared and maintained as support for all future administrative costs, especially costs which can be charged directly to funds other than the general fund. In 1979 and 1980 the City of Lino Lakes transferred $7,570.00 from dedicated park funds to the general revenue fund. These transfers represented reimbursement of park maintenance expenses incurred in 1979 and 1980 which were previously paid out of the general revenue fund. Budgets Questions were raised by the petitioners regarding the proposed Lino Lakes fiscal year 1982 budget which was published in the September 24, 1981 issue of the Circulating Pines. The concern was that this proposed budget projected expenditures exceeding revenues by $20,035.00. City officials stated that the budget as printed was a rough proposal and was published for the purpose of disclosing proposed use of revenue sharing receipts and expenditures, as well as a notification of a public hearing on same. Further, the final 1982 city budget that was accepted by the Council showed projected revenues to be $942,510.00 and projected expenditures of $891,570.00, a surplus of $50,940.00. Other Findings A resolution passed at the City Council meeting of January 14, 1980 increased Council member expense payments to $50.00 per month, with an effective date of February 1, 1980. Auditors were informed that this allowance is for travel and other necessary